Setting an Alternate Retention Schedule Event Date only alters the retention schedule applied to the record, not the cutoff criteria. The "Alternate Event" is best understood as flag that switches the record to use the Alternate Retention Schedule. The Alternate Event property is completely independent from the Cutoff Instruction and Cutoff Eligibility calculations, even if it uses one of the same Events as the Cutoff Instruction.

Here's what I believe you need:

• Cutoff Instruction: Coverage/Employee (?) Termination
  • Cutoff eligibility requires any event
    • Events:
      • Either both:
        • Coverage Termination
        • Employee Termination (create this event either way)
      • OR the single combo event:
        • Coverage/Employee Termination
• Retention Schedules
  • Retain 2 Years After Coverage Terminates, then Destroy
    • Instructions: Retain for 24 months, then Destroy
    • Alternate Instructions:
      • Event: Employee Termination
      • Retention Schedule:  Years After Employee Termination
  • Retain 6 Years After Employee Termination, then Destroy
    • Instructions: Retain for 72 months, then Destroy 

In the case of Coverage Termination:

1. Set the main Event Date for "Coverage Termination" or the "Coverage/Employee Termination" combo event (if you went the combo route) so the record becomes eligible for cutoff.
2. Cut the record off.

In the case of Employee Termination:

1. Set the main Event Date for "Employee Termination" or the "Coverage/Employee Termination" combo event (if you went the combo route) so the record becomes eligible for cutoff.
2. Additionally set the Alternative Retention Event Date to switch the Alternative Retention Schedule.
3. Cut the record off.